Open Space Institute Executive Director Robert Anderberg said the issue has been addressed in court cases and that ruling have favored not-for-profit groups such as the institute.

Kim Elliman, the president and chief executive officer of Open Space Institute, said: “Our basic position is that the (town) assessor’s decision is contrary to state law as established in Mohonk Trust vs. the Board of Assessor, which is a 1979 case that the town of New Paltz was a party to. It (Mohonk’s tax-exempt status) was upheld by the highest court in New York, and we (have) seen no subsequent court decision that would vitiate the initial decision.”

The Open Space Institute currently owns 863 acres of property in the town and plans to sell 534 acres to the Mohonk Preserve. Of the remainder, 322 acres are to be used for agriculture by the Glynwood Farm project, and 7 acres will have public access.

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The Mohonk Preserve pays no property taxes on its 1,818 acres in the town and will use the 534 acres it gets from the Open Space Institute as part of its Testimonial Gateway project.

Town officials have notified the Open Space Institute that its not-for-profit income tax filing status can no longer be used to claim exemptions from property taxes.

Elliman disagrees.

“Glynwood is running basically a farming school, so it runs under education,” he said. “The public will be invited to various agricultural benefits there, and Glynwood has it’s own charitable status. ... This is also agricultural use for which there is agricultural exemption.”

The Open Space Institute has been criticized by some in the region because it facilitates the sale of property that ultimately is taken off of tax rolls. But Elliman said, “The uses of our land are directly to provide access for recreation to and public enjoyment by the citizens of New York state and whoever wants to use them. They are open without fee or a state charge, so we get no compensation.”

New Paltz Councilman Kevin Barry last week said the status of property tax exemptions was determined by town Assessor Lorry King after she attended a recent conference.

“Our tax assessor went to a seminar in upstate New York about 30 days ago, and we had conversations about this law and whether or not the organizations should be exempt,” Barry said. “So there were some files pulled and we looked at some of the older records, and she was going to use her opportunity to meet with the pre-eminent expert on exemptions ... and she came back with this really interesting manual.

“... New York State Real Property Tax Law was revised in ’71 ... to give local municipalities an option to determine what qualifies (for exemptions),” he added.

Barry said notices were sent to about 25 organizations, informing them either their tax-exempt status was being turned down or telling them to provide information about programs conducted on the property.

The Mohonk Preserve was among those asked for more information.

Mohonk Preserve Executive Director Glenn Hoagland noted the town renewed the exemption for the preserve before later asking for information about programs.

“Under New York Real Property Tax Law, Mohonk Preserve is designated as a 420-a nonprofit organization qualifying for a mandatory exemption, as acknowledged by the town of New Paltz every year for the past 50 years,” Hoagland wrote in a letter.

“To subject over two dozen community charitable organizations to an extensive review process based on a misinterpretation of tax law seems misguided at best,” the letter added. “On behalf of all of our nonprofit colleagues, the preserve hopes that the town of New Paltz will carefully review its local law to determine whether it contravenes state law, state policy, and state judicial decisions.”

It is not immediately clear how much the Open Space Institute or Mohonk Preserve have to pay in property taxes if they lose their exemptions.